Financing Your Renewable Energy Investment
Financing Your Renewable Energy Investment
As we all realize how important it is for use to reduce our dependence on fossil fuels for energy, at the same time it is difficult for most to find the funds to set up a solar or wind power system in our homes and businesses. Fortunately there are many businesses and programs out there that are willing to help with funds and financing.
First off, you will want to see exactly how much your new system is going to cost you, so you know how much to borrow. Ensure that with any system you are considering purchasing you include taxes, shipping and installation if required. Then add about 10% as a pad for incidentals, just in case.
Next, see how much you can knock off that price. Start off by searching for local, state and federal programs that can help reduce the cost. There are many varieties of programs available, from tax credits to rebates and so on. Once you incorporate these incentives you will know what your final out-of-pocket costs are going to be.
Although it is tempting to finance the whole amount, you are much better off trying to pony up as much cash as you can, to save yourself from paying interest. Time the purchase for after tax season, if you tend to get a refund, or see if you can take out a low or no-interest loan from a friend or family member.
Any amount that is left will require plain old bank financing. If your mortgage is up soon you can incorporate the amount into your loan, as this will give you a lower interest rate. You can also go for home equity loans, lines of credit or special home renovation loans if your bank offers them. Don’t just be satisfied with your own bank, shop around to see who can offer you the best deal.
Also talk to the company who you are buying the equipment from, as they may offer some type of financing through a bank of their own. It’s worth a shot if it can get you a half decent interest rate or good terms.
Remember that you are immediately going to be saving every month and you can apply this amount to your loan, so don’t despair when you get ready to pay up every month. Once the loan is paid off you will have free and clear energy, literally. You can choose at that time to increase the amount of clean power your home is creating by adding more solar panels or by installing another wind tower.
While the initial cost may seem like a lot, over the long term it will more than pay for itself. Not only is it a good investment, it is a great way to reduce your dependence on fossil-fuel created energy, which is vital if we are ever going to do something about global warming before it’s too late. So get started with some online research and soon you will have solar or wind power of your very own.
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